Bitcoin rose to its highest level in two and a half weeks on Monday, while Ether reached a new record high, as cryptocurrencies gained momentum supported by positive news, inflows, and inflation concerns. Bitcoin was up approximately 7.3% in the latest trading at $66,250, and Ether, linked to the Ethereum network, reached an unprecedented level of $4,711. Since the beginning of October, Ether has gained 57%, and Bitcoin has risen about 50% amid investor optimism following the launch of a U.S. Bitcoin futures ETF last month, as they embrace this asset class, which is sometimes viewed as a hedge against inflation.
Before the current increases, particularly at the end of October, Bitcoin faced substantial losses, dropping more than $5,000 in a single session. However, analysts predicted that the market would eventually undergo a "correction" as Bitcoin continued its upward trajectory, according to a report seen by "Al Arabiya.net." Freddy Evans, a cryptocurrency trader at "Global Block" in the UK, stated that "the short-term pullback will pave the way for another increase in Bitcoin's price." He added: "Investors had anticipated a correction as the markets appeared overbought," as reported by "Daily Express." He continued: "The drop provides an opportunity for those looking to buy on the dip, suggesting there may be a short-term rebound, and we could return above $60,000 very soon."
One price model has projected Bitcoin's potential value at $135,000 by the end of 2021, while another forecast suggests reaching $250,000 by December, just two months away. It is worth noting that Bitcoin reached its all-time high of $67,016 on October 20.
